Indian Electrical & Electronics Manufacturers' Association (IEEMA) has applauded the government's amendment of General Financial Rules (GFR) 2017 to impose restrictions on bidders from countries sharing a land border with India, citing on 'national security' grounds, for all public procurement in the states; aimed at curbing Chinese dependency and boost the 'Atmanirbhar’ pitch. As per the issued order by the Department of Expenditure, any bidder from countries (China, Pakistan, Bhutan, Myanmar, Afghanistan, Nepal, and Bangladesh) sharing a land border with India will be eligible to bid in any procurement whether of goods, services (consultancy / non-consultancy services) or works (including turnkey projects) only if they are registered with the registration committee constituted by the Department for Promotion of Industry and Internal Trade (DPIIT).

In addition, political & security clearance from the Ministries of External and Home Affairs respectively will be mandatory. However, relaxation will be provided for procurement of Covid-19 medical supplies till December 31. 

In this backdrop, RK Chugh, President, IEEMA, expressed, “Indian electrical equipment industry has the capacity, ability and cost competitiveness to effectively service and meet the need of not only Indian industry but also enhance its exports. And if we as a nation are to be serious about taking on China in our own home market, then all of us - manufacturers, importers, retailers, consumers, and the government - need to commit to this. And more importantly, be prepared for both the consequences and costs of such a move at least in short run. From medium term onwards, we will start seeing enormous benefits out of full Make in India efforts.”

Articulating his thoughts, Vipul Ray, Senior Vice President, IEEMA shared, “National security is of paramount importance and in today’s connected world we as a nation have to be very vigilant and careful in what in install into our systems. Electrical industry is even more vulnerable considering the nature of the technology and the wide spread ramifications that it can have if something goes wrong as it has the potential to disrupt every aspect of life whether it be hospitals, telecommunications or industrial production. We wholeheartedly support and stand by the nation and the government in the interest of National Security. Indian industry is capable to deploy its own solutions and will surely rise up to the occasion and delivery when it matters the most.”

Echoing similar sentiments, Rohit Pathak, Vice President, IEEMA opined, “This is a turning point for the Indian electrical equipment industry. We have the capability and are competitive versus the Chinese players in the global market. However, with predatory pricing the Chinese had been partially successful at weakening the Indian players in our home market strategically over the past decade while simultaneously blocking Indian exports into China. I believe that with this move, the Indian electrical industry will benefit significantly in the medium term by gaining the scale in the domestic market and leveraging it to further enhance our global competitiveness. I have full confidence that as an industry we will commit to this challenge of not just making India Aatmanirbhar but also be the global supplier of choice in this sector.”

For more information: www.ieema.org